2. Disclaimer
“Forward looking statements included in this presentation regarding the
Company’s business, operating and financial results and Company’s growth
are only predictions and were based on management's expectations
regarding future performance. These expectations are highly dependent on
market conditions, Brazilian economic scenario, industry performance and
international markets, and are therefore subject to change”
2
3. Highlights
! 2010: The best year in the history of Eternit;
! Eternit acquires Tégula, leader in its sector;
! Eternit becomes the largest and most diversified industry in the roof
covering segment in Brazil ;
! Eternit anticipates by 1 year its goal of R$ 1 billion in gross sales;
! Net Income of R$ 102 million, up 39% compared to 2009;
! Inauguration of new production line of cement the unity of the BA;
! Beginning of construction of the production line of synthetic marble unit at
Annapolis; and
! On December 31, 2010, Eternit’s market value surpassed the R$ 1 billion
in BM&FBovespa.
3
13. Products and solutions for civil construction
Water tanks and filters
Components for constructions systems
Roof coverings
Bathroom chinaware fixtures
13
14. Sales of Fiber Cement* (thous. tons)
CAGR (2004/2010) = 11%
92% 827
725 731
620
578
523
431 19%
232
195
2004 2005 2006 2007 2008 2009 2010 4Q09 4Q10
* Includes components for constructions systems
14
20. IFRS Adoption
! CVM Instruction No. 457, mandates the submission of Financial
Statements of Corporations Traded on international standards - IFRS
from the year ended 2010.
! Eternit anticipates the implementation of IFRS as early as 2007 and
their impact on financial statements in 2010 are irrelevant.
20
21. Main IFRS Adjustments in Net Income
2007 2008 2009 2010
Values in BRGAAP 43,688 81,201 73,187 102,034
IFRS Adjustments
Additional Depreciation (104) (96) (104) (105)
Reversal of Deferred Asset 35 - - -
Reversal of Goodwill 8,279 - - -
Interest on Fixed Assets Financing - - - 182
Deferred Income Tax 23 28 36 (26)
Values in IFRS 51,921 81,133 73,119 102,085
!The main change in GAAP is the reversal of goodwill on acquisition
of subsidiary SAMA face the future profitability of this asset.
21
22. Main IFRS Adjustments in Equity
2007 2008 2009 2010
Values in BRGAAP 232,583 247,940 373,102 394,732
IFRS Adjustments
Goodwill – Reversal of Goodwill 16,558 16,558 16,558 16,558
Amortization – SAMA Minerações
Complementary CMB - Fixed 1,422 1,422 1,422 1,422
Additional Depreciation (207) (303) (402) (507)
Reversal of Deferred Asset (133) (133) (133) (133)
Reversal of Amortization of Deferred Assets 97 97 97 97
Interest on Fixed Assets Financing - - - 182
Deferred Income Tax 59 117 148 125
Values in IFRS 250,402 265,698 390,792 412,476
22
30. Tégula
Operating and Financial Aspects 4Q10 02/11 a 12/31
Sales - Tiles (in m2) 1,434,887 4,776,492
Net Operating Revenue R$ 19,133 thousand R$ 67,863 thousand
Gross Profit R$ 2,927 thousand R$ 19,832 thousand
Gross Margin 15% 29%
EBITDA R$ 1,281 thousand R$ 8,023 thousand
EBITDA Margin 7% 12%
Net Income R$ 7,962 thousand R$ 13,987 thousand
Net Margin* 42% 12%
* The net margin was positively affected due to the constitution of the deferred tax of R$ 10.3 million
30
32. New Production Lines of Finished Products
Goiânia - GO Colombo - PR Simões Filho - BA
April/2008 January/2009 October/2010
32
33. Construction of the New Synthetic Marble Production
External Area Production Line Resin Silo
33
34. Land Acquisition for “Multi-Products” Plant
Cement
MA
Natural Gas Line
CE
RN
PI PB
PE
AL
SE
BA
Distance:
Porto de Pecém – 35 km from Fortaleza Current
Eternit’s Area – 15 Km from Porto demand
Estimated
Land Area – 400 thousand square meters additional
demand
34
36. Eternit’s Shares Performance (Dec/06 - Feb/11)
Between 12/30/2006 a 02/28/2011, Eternit”s shares appreciated 63.8% and IBOVESPA
appreciated 51.5%.
In the same period, including the payment of dividends and interest on own capital, Eternit’s
shares appreciated 173.4%.
200 ETER3
IBOVESPA
170 R$ 11.08
67,383
140
110
80
50
dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- mar- jun- sep- dec- feb-
06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11
36
37. Ownership Structure – Feb/11
58.1%
32.0%
Individual Investors (5,789 shareholders)
Corporations (100 shareholders)
Investors Abroad (73 shareholders)
Clubs. Funds and Foundations
(203 shareholders)
7.6%
2.3%
Shareholding Structure Feb/11 Feb/08
Geração L. Par. Fund. Invest. em Ações 19.51% 6.89%
Luiz Barsi Filho 12.99% 5.47%
Victor Adler 6.70% 5.46%
Bahema Participações S. A. - 6.04%
Management 1.50% 0.97%
Treasury stock 0.03% 0.28%
Free-Float 59.37% 74.89%
37
38. Average Traded Volume (R$ thousand)
3,708
2,900
1,297
1,108
975 897
604 716
2004 2005 2006 2007 2008 2009 2010 2011(*)
(*) Until February 2011
38
39. Shareholder Remuneration
Net Income X Shareholders Remuneration (R$ million)
102
81 73
72
65
55
44 44
33 34 38 40
30
27
20
2004 2005 2006 2007 2008 2009 2010 2011*
Net Income Dividends and Interest on own capital
(*) Until March 2011
39
44. GDP and Gross Revenue Comparison (%)
GDP Construction GDP Brazil Eternit - Gross Revenues
34.9 33.3
13.2
11.6 7.5
8.2 5.1
5.0 5.4 5.3 6.6
4.5
-0.2
-6.3
2007 2008 2009 2010 2011(E)
(E) - Estimate - Source: BACEN.
Gross revenue growth has been consolidated as of January to December 2010 vs. the same period of 2009
The Company does not inform guidance of future revenue.
44
45. Housing Deficit – million of units
7.9 7.9
7.8
7.3
6.6 6.3
5.8
2004 2005 2006 2007 2008
New Methodology Old Methodology
45
46. Structured Expansion and Diversification Program
OBJECTIVE
Consolidate Eternit as a supplier of products and solutions to the civil construction industry
INITIATIVES
- Creation of the Development and New Businesses Area
- Inclusion of metallic roofing on its portfolio
- Investment in new product lines of fiber cement
- Investment in machinery for new products on its plants
- Increase in SAMA’s production capacity
- Launches of new products
- Debut into chinaware bathroom fixtures
- Inorganic growth – Acquisitions
46
47. Launches - 2011
Bairro Nova Odebrecht – Angra dos Reis/ RJ
Visit Eternit stand at
FEICON
47
49. Chrysotile – The Brazilian Ore
The use of Chrysotile Ore in Brazil is regulated
by the Federal Law 9.055/95, by Decree
2.350/97 and by regulatory standards for
occupational health and safety. It is also
provided in the Convention 162 of the
International Labor Organization (OIT).
White Ore
Bends and silky fibers without tip
High Concentration of Magnesium:3MgOSiO2H2O
Biopersistence*: 2.5 days
*Biopersistence: Time that a inhaled particle remains in
the lungs before being eliminated by the body’s defense
mechanisms. To cause lung damage, the fiber must have
penetration and durability capacities in the alveoli.
Serpentinite rock with Chrysotile Ore fibers
49
50. Brazil concludes important research about chrysotile ore risks
Project Asbesto Ambiental
“Ambiental Exposition to Asbesto: Evaluation of Risk and Effects in Health”
Process CNPq n. 420001/2006-9
The results of the research were announced on November 25 2010 and
demonstrates that:
Among the householders surveyed, no clinical, respiratory functional and
high resolution tomographic alterations were found that could be
attributed to atmospheric asbestos fiber inhalation.
In the occupational assessment, no new alterations were identified or
progression in pleural and interstitial deterioration of individuals in the
sample Group exposed after 1980 and who underwent High Resolution
Computed Tomography scans in the two studies.
The full version of this research can be found in www.sectec.go.gov.br.
50
52. Corporate Management
Open Doors Program
Launch ................... November 2004
Contribute to society’s better understanding of
the mining and processing of Chrysotile Ore and
Purpose .................
the manufacture of fiber cement products in a
sustainable manner.
Five production plants of Eternit and the SAMA
Location ...........
mining company
Visitors ............... More than 42,000 as of December 2010
Target ................... All society
52
53. Environment Focused Management
Zero Reject Monitoring Air Quality Water Reuse Reforestation Work
Quelônios Project - Animal Conservation Area
The only breeding program of Amazon turtles in Brazil and Reintegration
Seedling Nursery of Wild Animal Nature in partnership with IBAMA
53
55. Information
Élio A. Martins
elio.martins@eternit.com.br
Rodrigo Lopes da Luz
rodrigo.luz@eternit.com.br
Bárbara M. Tanure Gonçalves
barbara.goncalves@eternit.com.br
Phone: (55-11) 3813-6034 or (55-11) 3038-3818
www.eternit.com.br/ir or www.blogdaeternit.com.br
IR Consultant
Marcelo M. Fonseca This material was produced using FSC certified paper (Forest
Stewardship Council), which is a guarantee that the raw material
marcelo.fonseca@firb.com comes from a forest managed in an environmentally
responsible, socially and economically viable.
Tel: (55-11) 3045-1080
55
